Is Ambev S.A. (ABEV) the Best Brewery Stock to Buy According to Hedge Funds?

Insider Monkey01-01

We recently published a list of 12 Best Brewery Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Ambev S.A. (NYSE:ABEV) stands against other best brewery ...

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(NYSE:ABEV) stands against other best brewery ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ambev-abev-best-brewery-stock-185342801.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Ambev S.A. 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(ABEV) the Best Brewery Stock to Buy According to Hedge Funds?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-01 02:53 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ambev-abev-best-brewery-stock-185342801.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We recently published a list of 12 Best Brewery Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Ambev S.A. (NYSE:ABEV) stands against other best brewery ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ambev-abev-best-brewery-stock-185342801.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1150488135.SGD","symbol_name":"First Eagle Amundi Income Builder AHS-MD SGD-H","start_time":0,"source_url":"https://finance.yahoo.com/news/ambev-abev-best-brewery-stock-185342801.html","article_id":"2500649605","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2500649605","pubTimestamp":1735671222,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We recently published a list of 12 Best Brewery Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Ambev S.A.  stands against other best brewery stocks to buy according to hedge funds.The global alcohol industry is currently grappling with strict regulations, high taxes, inflation, and rising costs, which are likely to persist and may squeeze the profit margins of alcohol producers.The global brewing industry had been hit particularly hard as beer production worldwide fell to 1.88 billion hectoliters last year, representing a YoY decline of 0.9%.“After we had managed to post modest growth in 2022 despite unfavorable conditions, we were expecting another small increase in 2023. However, energy, raw materials, packaging, logistics, and labor costs remained at a high level, which put pressure on the brewing business in many countries.”READ ALSO:10 Best Marijuana Stocks to Buy According to Hedge Funds. A great example of this is how Americans dran","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1150488135.SGD":"First Eagle Amundi Income Builder AHS-MD SGD-H","LU0106259046.USD":"施罗德拉丁美洲基金","LU1150488218.USD":"First Eagle Amundi Income Builder AU2-MD USD","BK4158":"啤酒酿造商","ABEV":"Ambev S.A.","LU0256859116.SGD":"施罗德拉丁美洲A Acc SGD"},"translate_title":"根据对冲基金的说法，Ambev S.A.(ABEV)是最值得购买的啤酒股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ABEV":1},"content_text":"We recently published a list of 12 Best Brewery Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Ambev S.A. (NYSE:ABEV) stands against other best brewery stocks to buy according to hedge funds.\nThe global alcohol industry is currently grappling with strict regulations, high taxes, inflation, and rising costs, which are likely to persist and may squeeze the profit margins of alcohol producers. The global brewing industry had been hit particularly hard as beer production worldwide fell to 1.88 billion hectoliters last year, representing a YoY decline of 0.9 %.\nPeter Hintermeier, Managing Director of BarthHaas, commented:\n\n“After we had managed to post modest growth in 2022 despite unfavorable conditions, we were expecting another small increase in 2023. However, energy, raw materials, packaging, logistics, and labor costs remained at a high level, which put pressure on the brewing business in many countries.”\n\nREAD ALSO: 10 Best Marijuana Stocks to Buy According to Hedge Funds\nThe American brewing industry is also faced with a declining demand, as beer consumption in the US last year fell to its lowest level since the 1970s, according to the Brewers’ Association. In fact, in 2022, the American spirits industry surpassed beer in revenue for the first time ever. The trend then continued in 2023, driven primarily by the spirits RTD category. Nevertheless, the country’s major brewers were still in good financial health, thanks to rising prices and a consumer shift towards more expensive, often imported beers.\nA major factor behind the decreasing demand is also global drinking habits have shifted dramatically over the last few years. The modern consumers are increasingly focused on health and wellness and seek alternatives to traditional alcoholic beverages, giving rise to the rapidly growing low and no-alcohol trend. To make sure they don’t miss out on the opportunity, several industry behemoths have hopped on the zero-alcohol bandwagon and are now offering products with all of the taste and none of the booze.\nDespite the aforementioned challenges, the alcohol sector can be an attractive option for investors looking to diversify their portfolios, simply because of the buffer it provides during tough economic times. An analysis by Goldman Sachs has revealed that beer and spirits volumes in the American market have shown little correlation with economic growth. Their sales are more related to the general trends of alcohol consumption per capita rather than the general state of the economy. This is because beer and spirits are often seen as affordable luxuries or even staples.\nAccording to a study by Cambridge University, the decreasing levels of average per capita income lead to very small changes in gross alcohol, wine, and beer consumption. In fact, the surge in unemployment during recessions could instead trigger an increase in the average alcohol intake.\nA great example of this is how Americans drank more alcohol during the pandemic and this was also reflected in the resultant imposts collected by the national kitty. Alcohol tax revenues collected by the U.S. Treasury Department rose by 8% in the fiscal year that ended on Sept. 30, 2021, compared to the previous year, and remained well above pre-pandemic levels.\nAnother popular investment vehicle in the alcohol industry is rare whiskeys. Aptly named ‘Liquid Gold’, this beloved liquor can preserve and even increase in value during economic instabilities, inflationary periods, and recessions. One simply cannot forget about the bottle of The Emerald Isle Collection that sold in auction earlier this year for $2.8 million, or the 1975 cask of Ardbeg single malt which was acquired by a private collector in Asia in 2022 for over $20 million, more than double the amount Glenmorangie paid for the entire Ardbeg distillery and all its stock in 1997.\nThe Rare Whisky 101 Apex 1000 Index tracks whiskeys that are highly sought after for collection. It has gained over 384% since 2013, against almost 301% gains by S&P’s famous benchmark of the top 500 companies for the same period. The RW Japanese 100 Index, which includes 100 collector’s bottles from Japan, has seen gains of around 350% since 2015. The index includes bottles like Ichiro’s Malt ‘Card’ Ace of Spades, Ace of Diamonds, and King of Hearts, among others.\nMethodology\nTo collect data for this article, we scanned Insider Monkey’s database of 900 hedge funds and picked the top 12 companies operating in the brewing sector with the highest number of hedge fund investors. When two or more companies had the same number of hedge funds investing in them, we ranked them by the revenue of their last financial year instead.\nAt Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).\n A close-up on several cans of freshly brewed beer in a commercial brewery. \nAmbev S.A. (NYSE:ABEV) \nNumber of Hedge Fund Holders: 19\nAmbev S.A. (NYSE:ABEV), formally Companhia de Bebidas das Américas, is a Brazilian brewing company that has now merged with Anheuser-Busch InBev. It offers beer under several brand names such as Skol, Brahma, etc, and claims to be the largest brewer in Latin America in terms of sales volume. Ambev also has a relationship with PepsiCo to bottle, sell, and distribute its products in several Latin American countries, including Brazil.\nAmbev S.A. (NYSE:ABEV) remains challenged by various macroeconomic factors including higher costs of energy, raw materials, packaging, logistics, and labor, which are putting pressure on its brewing operations across various countries. However, with a deep-pocket owner like Ab InBev, an extensive distribution network, and a diverse product portfolio, the company has been resilient in both local and international markets.\nAmbev S.A. (NYSE:ABEV) had a mixed Q3 as tax effects impacted net profit, despite a 12% increase in revenue, although sales volumes declined compared to the previous year. The company’s brand strategy continued to work and its premium brands grew by more than 20% led by Corona, Spaten, and Original, all of which witnessed volume upticks of over 25%. The core plus brands grew in the low teens, led by Budweiser, which increased volumes by nearly 50%. This strong performance across various product categories highlights Ambev’s ability to meet diverse consumer preferences. It also means that true beer fans remain willing to pay a premium for the higher-end beers that the company offers.\nOver the last five years, Ambev S.A. (NYSE:ABEV) has generated BRL 68 billion (around $11 billion) in free cash flow and it maintained this performance in Q3 2024, as it reported a cash flow of nearly $1.33 billion from operating activities. The company has also benefited greatly from exchange rate fluctuations on cash held in its international operations.\nAmbev S.A. (NYSE:ABEV) has returned over BRL 43 billion (approx. $7 billion) to shareholders since 2020 and recently, it approved a BRL 2 billion ($330 million) share buyback program, demonstrating its disciplined approach to capital allocation. The company also announced a dividend of $0.0414 per share earlier this month.\n19 hedge funds in the IM database held shares of Ambev S.A. (NYSE:ABEV) at the end of Q3 2024, with a total stake value of $522.4 million, a staggering 165% increase from the previous quarter.\nOverall, ABEV ranks 9th on our list of best brewery stocks to buy according to hedge funds. While we acknowledge the potential for ABEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.\nREAD NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock\nDisclosure: None. This article is originally published at Insider Monkey.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.0","shortVersion":"4.30.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2500649605"}